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pneuma · Apr 22, 2007, 09:46 PM

I'm a barely surviving small retail business owner with a bank garnishment on my business account for personal consumer debts incurred before I had this business. How am I supposed to stay in business if I can't take credit cards or pay my vendors?

Can another account be opened in another bank? Can they also garnish a joint personal account with my husband if he has direct deposit of supplemental security insurance for permanent disability. When a person is self-employed, how do they decide how much that person makes? I pay myself based on how business is going by taking draws from this account and pay taxes on that amount. I take home less than the allowable exemptions or minimum wage. Everything else goes to overhead. How long does a bank garnishment last?

Also, if a Chapter 7 bankruptcy was filed in Oregon in Oct 1999 and discharged in Jan 2000, when can Chapter 7 be filed again? Can I file for personal bankruptcy without including my business. It is an LLC but I am the only member.

mr.yet · Apr 23, 2007, 03:51 AM

Is the judgment against the LLC or you personally??

pneuma · Apr 23, 2007, 10:25 AM

It must be against me personally because it's for debts incurred by me before I opened the business and the judgement is against me personally. I have not received notification yet, I just found out about my account by checking on line and then calling the bank.

ScottGem · Apr 23, 2007, 10:54 AM

I don't see how they can attach an account that is solely in a business name for a personal debt. I would get a copy of the order and immediately file a motion to vacate with the court on the grounds that is company assets, not personal ones.

mr.yet · Apr 23, 2007, 11:27 AM

Yes ScottGem is correct, file Motion to Vacate since the LLC is not party to the personal nature of the debt that is yours.

pneuma · Apr 23, 2007, 08:59 PM

How do I get paper for a Motion to Vacate? Do I ask the clerk of the court? Does it matter that I used this account for personal expenses? I do claim those moneys as wages and pay taxes on it.

Fr_Chuck · Apr 23, 2007, 09:14 PM

It can matter if you use this account for personal use.

A LLC should have a business account where it is strictly a business account, if you are co/mingling personal funds and business funds, or using an account in a manner as it if was a personal account, you may well be giving up the protectioin that the LLC is suppose to give you.

But again, they may have to prove this is the case. Remember you are suppose to be using that account just for business and then have your own personal bank account for personal things.

But as noted you can go to have this vacated, and see if they will use this for a reason not to. The bank account should be in the LLC using its tax number not your personal social security number

pneuma · Apr 23, 2007, 09:35 PM

Thanks for the help from you all. How do I find the correct way to file this Motion to Vacate as well as the correct forms? They haven't given me a lot of time, they'll release my funds to the creditor on the 27th.

pneuma · Apr 23, 2007, 10:52 PM

I received a Challenge to Garnishment, Notice of Exempt Property. With notification of the garnishment. The first paragraph says: I/We claim the following property or money is exempt from execution or is not subject to garnishment:...

Can I claim here that the account is exempt because it is a business account and all the assets belong to the LLC? Do I have to file a Motion to Vacate instead based on those reasons. Or do I try to get the exemptions based on the wage issue?
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mr.yet · Apr 24, 2007, 03:51 AM

Originally Posted by pneuma

I received a Challenge to Garnishment, Notice of Exempt Property. with notification of the garnishment. The first paragraph says: I/We claim the following property or money is exempt from execution or is not subject to garnishment:..........................

Can I claim here that the account is exempt because it is a business account and all the assets belong to the LLC? Do I have to file a Motion to Vacate instead based on those reasons. Or do I try to get the exemptions based on the wage issue?
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Yes the business account is exempt from garnishment. Challenge to Garnishment, Notice of Exempt Property is filed with the court along with the Motion to Vacate the garnishment.

Once you filed it in the court, send a copy to the bank, certified mail, this will tie their hands and they will not be able to release the funds.

pneuma · Apr 24, 2007, 09:16 AM

Thank you guys so much. It's really difficult to defend yourself unless you can afford a lawyer. I will file both and let you know what happens. They only gave me 4 days to answer so...